Eligible Activities

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Identification of Supporting R&D Activities

Supporting R&D activities are activities that are directly related to one or more core R&D activities.

By way of a summary, core R&D activities are experimental activities that follow a systematic progression of work and have an outcome that cannot be known or determined in advance. Core R&D activities are conducted for the purpose of generating new knowledge. For more detail see the section on core R&D activities and AusIndustry’s guidance material.

any activity related to the reproduction of a commercial product or process:

(i) by a physical examination of an existing system; or(ii) from plans, blueprints, detailed specifications or publically available information;

developing, modifying or customising computer software for the dominant purpose of use by any of the following entities for their internal administration (including the internal administration of their business functions):

(i) the entity (the developer) for which the software is developed, modified or customised;(ii) an entity connected with the developer;(iii) an affiliate of the developer, or an entity of which the developer is an affiliate.

Question 4

Activities that are on the core R&D activities exclusion list or activities that produce, or are directly related to producing, goods or services must also be conducted for the dominant purpose of supporting a core R&D activity.

This means that the ruling, prevailing or most influential purpose of conducting the activity must be to support the core R&D activity. This purpose must outweigh any other commercial considerations for undertaking the activity.

Is the activity undertaken for the dominant purpose of supporting a core R&D activity?

Question 5

Was the activity conducted in Australia or the external Territories?

Answer

On the basis of the answers you have given, the activity appears likely to be a supporting R&D activity

These questions are intended to provide useful information for companies considering accessing the R&D Tax Incentive. However they are not exhaustive and they, and any outcomes arising from answering them, are not legal or financial advice. It is your responsibility, with the assistance of any advice you wish to seek, to satisfy yourself about the eligibility of your activities for the R&D Tax Incentive. The Commonwealth disclaims all liability for any loss or damage arising from you or anyone else relying on these questions, any statement contained in them, or any outcome arising from them.

Answer

On the basis of the answers you have given, the activity appears likely to be a supporting R&D activity

These questions are intended to provide useful information for companies considering accessing the R&D Tax Incentive. However they are not exhaustive and they, and any outcomes arising from answering them, are not legal or financial advice. It is your responsibility, with the assistance of any advice you wish to seek, to satisfy yourself about the eligibility of your activities for the R&D Tax Incentive. The Commonwealth disclaims all liability for any loss or damage arising from you or anyone else relying on these questions, any statement contained in them, or any outcome arising from them.

You can only claim expenditure on R&D activities that are carried out overseas if the activities are registered with AusIndustry and are covered by an Overseas Finding.

An Overseas Finding is a decision made by Innovation Australia regarding whether activities performed outside Australia and the external Territories are eligible under the R&D Tax Incentive. Overseas work must satisfy four requirements in order to be eligible as an overseas activity:

the overseas activity must be an eligible R&D activity

one or more core R&D activities conducted in Australia must be unable to be completed without doing the overseas activity.

the overseas activity must be unable to be conducted in Australia (for specified reasons); and

the total actual and reasonably anticipated expenditure in all income years on the overseas activities is less than the total actual and reasonably anticipated expenditure in all income years on the related Australian R&D activities.

An Overseas Finding will only cover activities conducted during or after the income year in which AusIndustry receives the application for the Overseas Finding. You need to complete and lodge your application form before the end of the relevant income year because Innovation Australia does not have any discretion to backdate late applications.

Answer

On the basis of the answers you have given, the activity appears unlikely to be a supporting R&D activity.

These questions are intended to provide useful information for companies considering accessing the R&D Tax Incentive. However they are not exhaustive and they, and any outcomes arising from answering them, are not legal or financial advice. It is your responsibility, with the assistance of any advice you wish to seek, to satisfy yourself about the eligibility of your activities for the R&D Tax Incentive. The Commonwealth disclaims all liability for any loss or damage arising from you or anyone else relying on these questions, any statement contained in them, or any outcome arising from them.